Reinsurance market outlook: April 1, 2014 update

The transformative impact of alternative capital flows into the reinsurance industry continues to benefit reinsurance buyers. Traditional reinsurers have begun to employ the alternative capital flows to enhance their value propositions and match the price points available directly from funds that have not developed relationships with cedents.

While the traditional reinsurance market has only begun its transformation, it is clear that it will match the new lower disaggregated (diversifying) price points of alternative investors.

Reinsurance buyers are now able to imagine a future where very heavy margin loadings for peak zones may not be part of the long-term future.